📉 CHBL: SELL Signal (9/10) – Financial Results for the Year Ended June 30, 2025

📌 Key Takeaways

• 🚨 Sales plummeted by 28.4% from PKR 3,342.3 million in 2024 to PKR 2,389.6 million in 2025.
• 📉 Gross profit turned into a loss of PKR 80.3 million in 2025, compared to a profit of PKR 10.9 million in 2024.
• 💸 Operating loss widened by 12% from PKR 469.9 million in 2024 to PKR 526.3 million in 2025.
• 📉 Administrative expenses decreased by 7.6% from PKR 351.1 million to PKR 324.3 million.
• 📉 Loss for the year before levies and income tax deepened to PKR 590.3 million, a 103.5% drop YoY.
• ⛔ No cash dividend, bonus shares, or right shares were recommended.
• ⚠️ Earnings per share (EPS) turned more negative, from (PKR 2.84) in 2024 to (PKR 5.42) in 2025.
• 💰 Finance costs decreased from PKR 243.7 million to PKR 211.5 million.
• 🔻 Total Assets decreased slightly from PKR 10,918.7 million in 2024 to PKR 10,270.2 million in 2025.
• 🔻 Non-Current Liabilities decreased from PKR 9,060.9 million to PKR 8,630.2 million
• 💵 Cash and bank balances decreased from PKR 81.4 million to PKR 56.7 million.
• Long term financing decreased from PKR 8,079 million to PKR 7,469 million
• Revenue reserves increased from (PKR 8,068.4) million to (PKR 8,615.0) million.

🎯 Investment Thesis

Based on the current financial performance and trends, a SELL recommendation is warranted. The company’s declining revenue, increasing losses, and negative earnings per share indicate significant financial distress. There’s no clear turnaround strategy evident in the announcement, and the lack of dividends further diminishes the investment appeal. Given the substantial negative trends, the price target should be re-evaluated to reflect the company’s distress, with a significant downside expected. The time horizon for this recommendation is SHORT_TERM, as further deterioration is expected in the near future.